In One Year, the CPI Increased from 105

question 52

True/False

In one year, the CPI increased from 105.6 to 106.7. In order to have the same purchasing power as $100 at the start of the year, you would need $103.14 at the end of the year.

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Definitions:

Marginal Productivity

The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.

Income Distribution

Refers to how a nation’s total GDP is distributed amongst its population.

Equilibrium Quantity

The level of output at which the demand for a product matches its supply, marking a state of balance in the market.

Equilibrium Price

The price point in a market at which the supply of goods matches demand, leading to a stable market condition.